PSP World

Amazon to Sell PSN Game Tokens

In our increasingly connected world, there are more and more ways to buy entertainment content. Unfortunately for retailers, fewer of these methods involve going to an actual shop. With the advent of digital distribution systems like WiiWare, Xbox Live Arcade, Games on Demand, and the Playstation Network, gamers can now by digital copies of their favorite titles directly from console manufacturers. This cuts retailers out of the loop, and some are looking for creative ways to get back in again. Amazon is one such worried retailer, and it has recently announced a plan to meet Sony half way: The online shop will sell 'tokens' that can be redeemed for actual downloads on Sony's PSN service.

Why would a customer want to buy a game on Amazon (or any other retail shop) rather than simply buying it from Sony? The prices on Amazon's service are exactly the same as they are on Sony's PSN, and Amazon's interface is more clunky and not as streamlined as the service gamers are already used to. The only reason we could see anybody buying tokens from Amazon is for the ability to 'gift' games to friends. There is also the possibility that Amazon could offer deals in the future which undercut the prices on Sony's service (as part of a deal worked out between the two companies). Right now the Amazon PSN token page includes popular games like Echocrome, Wipeout HD and Everyday Shooter.

Why would Sony be interested in spreading any of the profits from the PSN around to retailers? Simply because it generates free advertising for Sony products and because these retailers still serve an important purpose in the video game ecosystem: they sell physical hardware.

Whatever the agreement between the two companies, it appears that Sony is the one that will benefit the most. Margins on electronic token sales are likely to be thin, with most profits going to Sony anyway. Expect more retailers to sign on to the system even if it doesn't clearly benefit them. They are stuck between a rock and a hard place: either ignore digital distribution altogether and drift into obscurity, or try to grab a slice of the pie knowing that revenues will be diminished. Sony seemed pleased with the arrangement, adding that it is looking to make similar deals with retail partners."We would have a similar discussion with anyone else currently selling PlayStation products," said Sony senior VP Peter Dille.

Wipeout HD is one of the games that can be purchased through Amazon's new PSN token store.